Peter Potman, the new consul general of the Netherlands in Shanghai, first came to China in 1989 to supervise press, culture and political affairs at the Dutch embassy in Beijing. The embassy, which employs 100 people today, then had a staff of just 25 including housekeeping. Potman met his wife – a Dutch sinologist – during his two-and-a-half-year tenure at the embassy.

Potman's career in the Dutch Ministry of Foreign Affairs took him far from China's shores for the next 20 years. In Hague, he served on the Southeast Asia Desk and headed the US Desk. Potman later negotiated nuclear disarmament and non-proliferation treaties in Geneva and served in the Dutch embassy in Washington DC.

Peter Potman, consul general of the Netherlands in Shanghai

The senior Dutch diplomat returned to China in August to serve as the consul general of the Netherlands in Shanghai. China Daily visited Potman in his West Shanghai office to discuss Shanghai's role in the burgeoning commercial ties and cultural exchanges between the world's second-largest economy and its second-largest agricultural exporter.

CD: How would you describe the Netherlands to someone unfamiliar with the country?

PP: Naturally, we have many windmills and tulips, but that's not all. Holland is the world's second-largest exporter of agricultural products after the United States. This is a considerable achievement given our size. We export two thirds of the world's freshly cut plants, flowers and bulbs and a quarter of all of its tomatoes. We benefit from Rotterdam – Europe's largest port – but equally important are Dutch technology and know-how.

We also have many of the things you do not see – you might say "the power within." We excel at building complex logistical systems and creating advanced technology to be used in high-end products. The Dutch firm ASML produces the machines that manufacture 80 percent of the world's chips. The semiconductor company NXP founded by Philips produces key products for onboard navigation systems used in the automotive industry, such as low-noise amplifiers and transistors. And in Shanghai, the Dutch company NITA designed the entire Expo Park.

CD: How does the consulate general assist Dutch companies that want to set up operations in East China?

PP: Our commercial section helps many aspiring Dutch companies exploring business opportunities in the greater Yangtze River Delta area. We also have dedicated science and technology advisers from the Netherlands who facilitate cooperation between Chinese and Dutch high-tech companies. There are 800 Dutch firms in Shanghai alone and many are involved in science or technology. Philips has a significant presence here, as does DSM, which focuses on the life and material sciences.

CD: What advantages does Shanghai offer Dutch companies?

Most Dutch companies establish their China headquarters in Shanghai because it has excellent infrastructure and sits at the heart of the Yangtze River Delta. It has a cosmopolitan, well-educated workforce. The Netherlands is Shanghai's third-largest foreign investor and trading partner among European countries. And Shanghai is a very livable city. It has plenty of conveniences and rich personality, especially the cityscapes and waterfront.

CD: Why should Chinese companies aiming to invest in Europe consider the Netherlands?

PP: The Netherlands serve as the gateway to Europe in several ways. We have excellent infrastructure with the region's largest port – Rotterdam – and fourth largest airport – Amsterdam Schiphol Airport. Transport costs from intercontinental sources through the main ports are low and there are frequent connections to other European regions by land and water. Since the Netherlands is such a compact and highly developed country, we serve as an ideal point of entry for the European market. A company that wants to build its brand in Europe can test out its product in the Netherlands and if the product is successful, expand into other nearby markets. Lay's, the potato chip maker, offers a good example in this respect. This strategy would not be successful in larger countries with distinct regional differences. As Chinese companies expand into Europe, they can take advantage of this opportunity in the Netherlands.

Fiscal incentives and a strong labor force are important too. We have a low corporate tax rate at just 25.5 percent and the largest number of taxation treaties with other countries in the world. Dutch workers are highly educated, multilingual and flexible.

CD: Which Chinese companies are currently active in the Netherlands?

PP: Huawei was the largest Chinese investor in the Netherlands in 2010. It has a big office in Amsterdam and has plans to expand upon that in the near future. ICBC [The Industrial and Commercial Bank of China] opened a branch in Amsterdam earlier this year. This will make it easier for Chinese companies in the Netherlands to manage their finances.

CD: How do you think Chinese and Dutch companies can deepen their cooperation?

PP: China and the Shanghai region in particular will transition in the coming years to an innovation economy, from "made in China" to "designed in China." Dutch design companies and architects will have many chances to work with their Chinese counterparts. Ambitious young Dutch architects went to New York in the 1980s and 90s but now they come to Shanghai. Some set up a small office. Others just arrive with a laptop. Tremendous opportunity exists here.

CD: How are cultural exchanges developing between China and the Netherlands?

PP: The Chinese are the largest foreign student population from outside the European Union in Holland. Most of them study IT, engineering or business. We are seeing an increasing number of Chinese tourists too. The Dutch consulate in Shanghai processed 11,000 visas in 2009, 15,000 in 2010 and is this year heading for 21,000.

Here in East China, there is an increasing interest in Dutch culture. The famous modern dance ensemble Introdans performs at the Portman Theater this month. The Royal Concertgebouw Orchestra will play for two nights in Shanghai next February. Next spring, a Van Gogh exhibition will come to Nanjing. The Dutch National Day is April 30. To celebrate it, we are planning a comprehensive program of cultural and business seminars, exhibitions and other activities during the last week of April.

CD: How will Rotterdam and Shanghai celebrate the 25th anniversary next year of the establishment of Rotterdam's representative office here?

PP: As sister cities which are both large ports, Shanghai and Rotterdam have a rich relationship. Next September, the mayor of Rotterdam plans to visit Shanghai for the celebrations, which will include an exhibition focusing on 400 years of maritime relations between the Netherlands and China. Together with the upcoming 40th anniversary of the establishment of Sino-Dutch diplomatic relations, these events will highlight the deepening ties between our countries and cities.